IRON MOUNTAIN — Off-site consumption of alcoholic beverages will be allowed in a section of downtown Iron Mountain if state regulators approve a proposed social district.

The city council Monday adopted a resolution to establish the district east of Stephenson Avenue, extending south from Brown to C streets, and bounded on the east by Iron Mountain Street.

Beverages would be sold by licensed establishments in marked cups that may be taken into the designated “commons area” of the district, which generally includes sidewalks, public parking lots and street rights-of-way.

The cups may not be glass and must display the social district logo along with the establishment’s name or logo. In most cities that have such districts, the bar places a sticker on a cup, City Manager Jordan Stanchina said.

The council’s resolution sets hours for the district of 11 a.m. to 11 p.m. daily.

Social districts are permitted in Michigan under a 2020 law intended to spur economic activity and provide flexibility for hospitality businesses, according to a Michigan Municipal League fact sheet. Cities in the Upper Peninsula that have districts in place include Houghton, Marquette, Negaunee and Manistique.

Tim Cauley, Iron Mountain’s Downtown Development Authority director, has prepared a management and maintenance plan for the district in consultation with businesses and city officials.

The DDA will manage social district business training and public education. The city will install signs as required by Michigan Liquor Control Commission rules to identify the general boundaries.

Under MLCC rules, consumption in commercial building spaces may also be permitted, subject to the property owners’ posted approval. The commons area, however, cannot include establishments that sell food but are not licensed to allow alcohol consumption.

Also, the alcohol may only be consumed within the establishment that dispensed the beverage, or within the commons area, which does not include the premises of other licensees.

The proposed district will now go to MLCC for approval. Once established, bars and restaurants who are qualified licensees and wish to take advantage of the law can apply with the city and then MLCC.

The council had little discussion on the proposal, apart from adjusting the hours suggested by Stanchina, who had proposed 5 p.m. to midnight Monday through Thursday and noon to midnight Friday through Sunday.

Having the same hours every day should make it easier for enforcement, said council member David Farragh, an assessment shared by Ed Mattson, director of police and fire services.

If there are problems, the city can revoke the social district designation, but a public hearing would be required.

The establishment of a social district doesn’t prevent a business from having a sidewalk cafe in accordance with MLCC guidelines and city ordinances. The commons area is intended to be supplemental to that, the DDA plan states.